The latest publication from Hamburg-based market research company yStats.com titled “Global Online Payment Methods 2023” shares insights into the recent trends and developments of the digital payment market across various regions of the world. The publication reveals that though credit cards continue to dominate the B2C E-Commerce payment landscape alternative payment methods like digital wallets, BNPL and real-time payments continue to rise in popularity.
Credit cards continue to dominate the online payment landscape
Despite the resurgence of in-person shopping, global online shopping adoption remains high. The anticipated growth of the global B2C E-Commerce payment value is expected to maintain a low double-digit CAGR through 2027. The usage of contactless cards is on the rise, with their transaction value projected to nearly double by 2027, displaying a higher CAGR than the global B2C E-Commerce payment value, according to a new report from ystats.com. Credit cards remain the most used and preferred online payment method globally, with over a quarter of adults expressing a preference for them. However, alternative payment options, particularly digital wallets, have been steadily gaining popularity and rank second among preferred online payment methods. The forecast indicates that virtual card transactions and BNPL B2C E-Commerce sales will almost quadruple between 2022 and 2027, highlighting the growing preference for alternative payment types. Asia-Pacific leads in digital payment methods adoption, while other regions show varying levels of development and adoption of alternative payment methods. In Latin America, credit cards still dominate B2C E-Commerce sales, with digital wallets ranking fourth, comprising a low double-digit share of sales. Additionally, BNPL makes up a low single-digit share of B2C E-Commerce sales in most Latin American countries, despite witnessing significant annual growth, indicating potential in regions with slower adoption of alternative payment methods.
Real-time payments to witness significant growth globally by 2027
Real-time payments are gaining global popularity as a digital cash replacement. Across the world, the volume of real-time payments in Latin America is expected to almost quadruple by 2027, showcasing a growing preference for this online payment type. In the UAE, the number of real-time payment transactions is projected to nearly quadruple in the same period, while Egypt is expected to experience triple-digit CAGR in real-time payment transactions, reflecting tremendous growth. In more developed online payment markets like Asia-Pacific, the forecasted CAGR for real-time payment volume growth in South Korea and China is expected to remain at single-digit and low double-digit percentages by 2027, demonstrating a slower but steady adoption of real-time payments in these regions.